Conservative MEPs lead the fight against EU tax harmonisation

The report comes from a special committee of MEPs set up in the wake of the "LuxLeaks" revelations over allegations of tax avoidance.

Conservative MEPs support the international fight against aggressive tax avoidance, however this report contains many recommendations which impact
upon national sovereignty.

These include the introduction of a compulsory common consolidated corporate tax base and the definition of a minimum taxation rate.

It also criticises the principle of unanimity in the Council of Ministers on tax matters, meaning that all national governments must agree before changes
can be made,

Ashley Fox, Conservative spokesman on the committee said: "Conservative MEPs are strongly in favour of measures to tackle unfair or illegal practices
such as tax avoidance or aggressive tax planning.

"However we strongly believe that issues relating to direct taxation are a national prerogative, and insist that there should be no change to the unanimity
rules in the Council."

The South West and Gibraltar MEP added: "The UK is already leading the way in preventing tax avoidance, for example by committing to introducing legislation
to implement the model for country-by-country reporting already agreed by the G20.

"Corporate tax avoidance is a very real problem, but it is one that reaches beyond the boundaries of the EU and so international, rather than European
agreement is needed."